LSR - Lodestar Minerals

[Miner]

Hi
I am proposing a new thread on LSR- Loadstar Resources.
It is a spin off company from DIO.
Sound management (on paper) and small no of shareholders. I have also tipped this for 2008 competition just now.
THe public issue reportedly got oversubcribed, there was preferential allotment to DIO shareholders and still the share is at 17-18 cents agains 20 cents issue price.
Any information share good or bad on LSR will be appreciated.

Regards

 

[lienad]

Re: LSR - Loadstar Resources

up 75% at the moment with not many buyers in sight. taken a shalocking over the past few months so might be on a breakout. any thoughts???

 

[Spineli]

Re: LSR - Loadstar Resources

small volume going through. massive spread between the 2nd next buyer and the 2nd next seller ~ 50%.......

 

[Miner]

Re: LSR - Loadstar Resources

Unbelivale jump. Probably some one knew something from drill result or some thing acquisition etc ? It was a spin off from DIO.
Worth watching to see development in a down ward market today.

 

[beatle]

Lodestar Resource - LSR

As a pure spec exploration stock the company is an exciting play at the moment. IF things play out the way I consider that they could, then in the next few days LSR could have a market cap considerably higher than it is today, based on a few different factors:

1. Fundamentals of LSR - its got only 65 million shares on issue, its got ca.$6.5 million market cap and ca. $1.7 million cash in bank at present. It holds a huge tract of ground immediately along the same trends of major structures next to SRI and close to SFR at Doolgunna. On its ground there are indications of many different mineralsing influences, but most importantly indications of copper gold that is so relevant at SFR and potentially at SRI's Thaduna prospect.

With such a low market cap, and low shares on issue any positives that arise from SRI activities currently in process will immediately translate to potential huge moves up in share price for LSR!!!

2. SRI has called a trading halt, for its work on the nearby Thaduna prospect and the early indications from its recently drilled ground is that it must have hit something significant to call that trading halt! SRI is a very conservatively run company, by a respected geo Mike Doepel, so the trading halt should not be seen as a frivolous action in my view. Since its too early for majority of drilling assays to be available for that drilling, its likely that some visual indications of strongly positive drill intersections is the most likely cause for the trading halt, and one would presume that if that is the case, then the action in LSR would be ongoing until aclear picture of what is happening nearby at SRI is evident.

I believe as a spec play, LSR would have to be a real interesting opportunity whilst the trading halt on SRI continues, and it will be too late after the announcement is made, its too lightly traded to get a position after the after announcement IMO.

(Of course, the other thing is SRI, its likely to run too once the news becomes available, so SRI is also a good punt but you can't get into that until after the announcement has been made about its trading halt is released!).

Good punting everyone!

 

[beatle]

LSR's share price moved up very strongly last week, on the back of general activities of others in the Doolgunna - Peak Hill area (eg SFR-OZM/THX), and it has the potential to be a real solid performer once general exploration activities are underway. However, the share price has fallen in the past few days, and I presume its not just because of the general falling away of the market, but more specifically I would imagine the company is in the process of trying to raise more cash for its exploration efforts. Thus the share price might continue to be under some threat until that fund raising, if its in fact underway, is finalised.
The other issue at present for LSR, is that from my reading of latest reports, all clearances for exploration with the Native Title process, are yet to be completed, therefore there is still likely to be more time involved getting those clearances before works can begin. Therefore the share price might soften a bit more before things start to happen for the company.

If anyone is in a better position to make comment I would appreciate the input please.

 

[Lucky_Country]

They now have cash for drilling and tennaments are 100%.

Heritage issues seem all but complete could be getting set for a good run, by far the cheapest entry into this area that Sandfire has made a household name.

 

[beatle]

Hi Ijh and others.

LSR is just starting to "bob" its head up again with it hitting 14 cents (slightly, lol) after coming back from the previous run when SRI appeared to have hit paydirt at another adjoining Doolgunna tenement (but SRI announcement was a false alarm!)

LSR is a pure spec play, but has got some essential ingredients that could result in a huge play ahead for punters:
1. Its in the "hottest" mineral district in Australia, being the Doolgunna area where nearby SFR has gone from minnow sub-10 cents to $7.80 plus (a market cap of A$1.0 billion);
2. It has similar geology to the nearby SFR Degrussa deposit, and has got identified drill targets based on detailed VTEM survey which are coincident with geochemical anomalies, a similar exploration ingredient to Degrussa.
3. LSR has recently completed a small placement (with another subject to shareholder approval), and these funds are sufficient to commence drilling of the Priority One targets.
4. LSR has got minimal shares on issue, 74.7 million, and will move higher on announcement of drilling soon to commence, and APPRECIABLY higher on any indications of mineralisation anything like SFR - currently LSR market cap of $10million is a pittance compared to most in the region, notwithstanding LSR is very close to Degrussa!

LSR should be a good spec play in coming months, as drilling commences.

 

[beatle]

Trading in LSR was well disguised with someone trying very hard to conceal their tracks in between trading ranging from 1 share (!!!) at 13.5 cents, to 13.0 cents (crossing!!!), but clearly the demand is beginning to build up, even the close was hard for the capper to hide the trading (tried very hard to keep it at 13.0 cents but couldn't hold the 99,999 at 13.5 cents, lol!).
Clearly with the time moving ever closer to D-day for first drilling of the most advanced priority targets LSR is ready to move to an entirely different orbit northwards of where it has traded in recent times.

With its comparatively low shares on issue any sniff of mineralisation could see LSR trade way above its peers that hold less prospective ground in this most favoured Doolgunna district, adjacent to SFR's Degrussa copper/gold deposit that has got SFR capitalised just above A$1.0 billion. If there is success you can bet that SFR type dollar price numbers will be very easily achieved quickly due to that low share capital base (even though the market cap is currently $10 million at a price of 13.0 cents, if it moves up towards $100 million, ie 1/10th of SFR's market cap, that equates to a share price of $1.30 on current shares on issue!).

 

[Lucky_Country]

Any success of drilling and LSR will be on everyones lips just in the way SFR is.

A tightly held share base will see any rise in volume equate to a strong surge i the SP.

I for one am in this for the long haul as its potential is there for all to see.

The smart ones are now accumulating !!!

 

[beatle]

Hi Ijh, I totally agree with your view and the potential for LSR to "do a SFR" (share price wise). Whilst its a completely speculative play, the prospectivity of its Doolgunna ground is very exciting from a geological point of view and I can see a lot of activity in LSR shares even as it moves closer to its first drilling campaign, whether it finally confirms that prospectivity or not!

I will get a bit controversial with my next comment:

I firmly believe that the current share price is being held down as best it can, ahead of the AGM, due next Friday 29 October - why? Specifically at the AGM there is a resolution to approve 13.9 odd million shares as a placement that will ensure LSR can undertake the drilling soon after. The issue for shareholders is that the price of the placement is 9.5 cents per share, and clearly the current placement holders don't want the share price to appreciate too much BEFORE the vote in case it gets booted out! So, whilst you may not like the placement pricing, it does ensure exploration drilling will be carried out soon thereafter, and also I assume that the placement takers will support the share price soon after the vote. So when do I think the share price will start moving - perhaps as soon as about the time of the resolution being passed. I'm not sure how it could affect the share price IF the resolution is not passed.

 

[beatle]

With a little under 30 minutes of trade to go LSR volume is considerable compared to its usual volume traded. The ONLY other times when it has traded more shares in the past 12 months are on the 9th June 2010 and 5th/6th August when the shares moved to more than the 15 cents it has achieved today (june it traded as high as 17.5 cents and august 19.0 cents, both intra-day highs). Since I can only assume that the current volume is in anticipation of drilling of its highly prospective Doolgunna project immediately adjacent to SFR's high grade Degrussa gold/copper project I can imagine what price LSR will get to once thats confirmed. I believe it won't stop at the current price, it will run much higher than 19 cents, and volume will also pick up.
I believe also that we have another week of this sort of trading activity before the real trading begins, as next Friday is the day for voting on the placement shares. IF the resolution goes through, then you can imagine the additional push that will be forced on LSR as the Sophisticated Investors get set for this to run!

 

[Lucky_Country]

I do think a placement at 9.5c is a bit low in this current enviroment but if achieves its goal of strating a drilling campaign then so be it.

Today showed LSR is on alot of peoples radar good volume and finished on its highs.

Thats what I like to see !!

Very undervalued imo

 

[beatle]

Ijh, I can't agree more, that whilst the placement is a bit low, it provides the funds to commence the drilling, and lets hope that the next fund-raising is substantially higher once LSR has been able to prove the prospectivity of its ground.
As an indication of the impact of drilling on LSR I looked at recent trading history of THX, which you will know has ground in the Doolgunna district, where drilling commenced and had a good drill strike. If we look at the results of that strike on THS market cap and then translate that back to LSR related to its own shares on issue to see what may result:
1. At the height of the first positive reaction to THX drilling results the market cap increased about $60 million, then finally dropped back to an increase over the following months to be up +$15 million. That translates to LSR of its share price moving from its current 15 cents, up to 81 cents then slowly back to 29 cents based on its fully expanded shares on issue (after the final placement to 88.9 million shares).

Its a simplistic analysis, and assumes similar drilling results, market behaviour etc etc.

IF on the other hand LSR's drilling starts to prove up something akin to a Degrussa, well if we put a $1 billion market cap on LSR, the skies the limit - its share price would be worth of an order of $11.25!!!

Exciting times for LSR ahead, particularly since its ground is more likely to come up with a real Degrussa IMO!!!

 

[Lucky_Country]

Hi Beatle

Looks like someone is reading your post as todays buying has been non stop !!!

Im really starting to think the placement is looking a bit to cheap for my liking although I do think we should go through with it maybe 2 c higher would be a more popular price and would reflect well on Pattersons to do this.

Im looking forward to the $11 shareprice target being reached LOL

 

[beatle]

Hi Ijh, once again agreed. I guess this placement is a 2-way thing, that whilst Patersons obviously negotiated hard at the time, the management must have thought it was the best possible pricing it could get - in hindsight some conditional placement bearing in mind it was done in 2 tranches due to the 15% refresh requirement, that should have been that the second placement done at 9.5 cents or 80% of the last 5 days VWAP whichever the higher!

I wonder if LSR could possibly go back to Patersons with view to changing the pricing at this stage even though the meeting is this week, I'm sure it could be done. In fact I'm sure that Patersons have been trying to defend their placement pricing in the past couple of days, using the first tranche of funding as ammunition to hold ground - but you can't turn an avalanche around easily!

With regard to the comparison with SFR, I guess that we do have a commonality of being adjacent to Degrussa and having similar coincident target anomalies based on both geochem plus VTEM anomalies! That means that at least its a very positive similar story to Degrussa, and I can recall when SFR first made the announcement and wondering if I should buy some! With LSR we have the knowledge of what LSR can be IF IT STRIKES paydirt! Now all we need is some interesting first pass drilling results - remember that the top levels of SFR's drilling was not so interesting till they drilled deeper.

 

[Lucky_Country]

SFR was one I definately missed out on but totally agree LSR has the same characteristics so I wont be missing out here !!!


Buying today has bee relentless looks to be taking a breather hoping a few more sellers pop their heads out.

Pattersons if they still take the placement @ 9.5c will definately owe LSR some great coverage imo.

 

[beatle]

By the way Ijh, feel free to copy any of my posts onto HC (I note you post there, but I was suspended from that site a while back for having had a run in with one of the HC mods who said that I had duplicate accounts which is rubbish but I can't get back in there as a result!).

I would say to you that whilst LSR is a very speculative trade, compared to my other main resource stock being RED which is not so speculative these days and more a developing story, its got some very exciting differences to RED, mainly that its number of shares on issue could see it go through the roof. I only hope that my fellow RED club members start to see the opportunity and put some more buying power into LSR, if they do then this could move even higher, they are a determined and positive bunch of investors/traders from what I have observed!

Go LSR (and RED!).

 

[Lucky_Country]

Looks like someone is trying desperately to keep the sp down and keeps lodestaring up around the ~16.5c sell side !!

Roll on next week after the placement could be an exciting week gotta say im looking forward to the drilling campaign !!

 

[beatle]

Absolutely Ijh, I can't wait for the announcement of the drilling, as by that stage LSR should be much higher.

In fact today's trading is very interesting, with the volume now well above last fridays great day, and although it appears there is no change, i too believe that the share price has been capped, and i have no problems buying more at current prices - I believe whatever you can get now will be in profits once the capper is released! (I have already been actively buying more today).

It would be good to see it even treading water for the next couple of days, as the first placement stock gets redistributed around! (I wish I got it at 9.5 cents, but am happy to get it at the current price knowing whats coming up).